Insurance/Assurance

Chinese translation: 保险

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04:41 Sep 6, 2008

English to Chinese translations [PRO]Insurance

English term or phrase:Insurance/Assurance

Can anyone help me clarify these two terms in insurance sector? They appear like "insurance/assurance sector risks"Many thanks

Reference comments

10 hrs

Reference

Reference information:Insurance vs. assurance

Outside the United States, the specific uses of the terms "insurance" and "assurance" are sometimes confused. In general, in these jurisdictions "insurance" refers to providing cover for an event that might happen (fire, theft, flood, etc.), while "assurance" is the provision of cover for an event that is certain to happen. However, in the United States both forms of coverage are called "insurance", principally due to many companies offering both types of policy, and rather than refer to themselves using both insurance and assurance titles, they instead use just one.http://en.wikipedia.org/wiki/Life_insurance

In the context of life insurance, a technical distinction is made between assurance and insurance.

Assurance is used for policies under whose terms a payment is GUARANTEED, either after a fixed term or on the death of the insured; insurance is the general term, and is used particularly for policies under whose terms a payment would be made only under CERTAIN circumstances (e.g. accident or death within a limited period).http://www.phrases.org.uk/bulletin_board/5/messages/1399.htm...

For the purposes of financial provisions, a life insurance policy provides cover for a set period of time. If the worst were to happen during that time (and there are no complications), then the insurance company will be required to pay out the agreed sum to the beneficiary. The only time the policy has any real monetary value is if there is a claim made for payment as a result of an event triggering that claim, such as the death of the person covered. If the person outlives the term of the policy, then the insurance policy will cease and no payment will be made.

Life assurance is different from insurance, and will always result in a payment. This is achieved by combining an investment element along with and an insured sum. This means that over time the value of the policy can increase as the investment bonuses are added. If a person covered by life assurance were to die, then the insured sum would be paid out, alongside the investment bonuses which would have accrued over time. If it is necessary to cancel the policy prior to the end of any designated term period, or the death of the life being covered, then once an investment bonus has been added, the life assurance policy will have an encashment value. It is therefore possible to cash in a policy earlier than its usual termination date, in order to collect on the investment portion. It should be noted that many insurance companies place penalties for cashing in policies early.

The distinction between the two terms has become increasingly blurred. This is principally due to many companies offering both types of policy and grouping insurance and assurance titles in similar contexts, sometimes interchanging the two terms. Richard Brown, Chief Executive of Moneynet.co.uk, clarified the situation by stating, "most life insurance companies offer a wide range of insurance and investment services – for example pension, investment funds, investment bonds, car insurance, home & contents insurance, life assurance, and even loans. Sometimes a ‘life insurance’ company will call itself a ‘life assurance’ company but they mean one and the same."http://www.buzzle.com/editorials/6-15-2005-71621.asp